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Reported Question / Answer
Q.) Many times we read in newspapers that some bank(s) has/have to write off certain amount given/advanced by them. In banking terminology, what does ‘write off’ mean ?
1)
Loans sanctioned on paper but bank has yet to make provision for the same so that borrower can withdraw the money
2)
Big corporate loans for which bank has/have to take approval from RBI
3)
Loans for which documentation work is yet to be completed
4)
Bad and uncollectable loans
5)
Those loans which can never become bad or uncollectaebl loans as they are given under some social assistance scheme by the Govt. of India
Answer :
4
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